Stockton creditor cries foul

One of the last creditors yet to strike a deal with Stockton in bankruptcy talks wants a judge to force the city to reveal the fine print of tentative agreements it already has with other creditors.

The Record

One of the last creditors yet to strike a deal with Stockton in bankruptcy talks wants a judge to force the city to reveal the fine print of tentative agreements it already has with other creditors.

The city's figures aren't “plain and simple,” argue attorneys for Franklin High Yield Tax-Free Income Fund and Franklin California High Yield Municipal Fund, who have challenged Stockton's plan for exiting bankruptcy.

U.S. Bankruptcy Judge Christopher Klein on Nov. 18 is expected next to hear the case and approve or reject the exit plan, which would then go up for a vote by the creditors.

The city in October formally filed its bankruptcy exit plan, spelling out deals with the police union and creditors that insure bonds issued to pay pension debt, build the Stockton Arena and parking structures.

Read Tuesday's Record for more on this story by staff writer Scott Smith.

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